Robert Assaf is giving evidence before a corruption probe for a third day, fielding questions about an alleged role funnelling cash and move funds from prohibited donors.
The NSW Independent Commission Against Corruption is investigating alleged illegal political donations and branch-stacking, spearheaded by the Reformers, a conservative Christian faction among the NSW Liberals.
On Monday, Mr Assaf told the commission his motivation to eventually leave the Reformers reflected concerns he held about co-founder Christian Ellis.
Mr Assaf said the state Liberals' right faction spread concerns, jokes and insinuations regarding Mr Ellis' connection to fugitive property developer Jean Nassif.
Mr Assaf grew concerned his co-founder was not entirely honest about the matter, and feared it created a negative impression for his group.
"(It was) a perception issue, you just don't want to be associated with developers because it really taints the valued stuff we were doing," he said.
He also told counsel assisting the commission, Peggy Dwyer SC, he grew upset with Mr Ellis over finances relating to his work with Mr Ellis' consulting company Beckington.
Mr Assaf chased payment he believed he was owed, after committing Catholic Schools and another client to the business, saying he was growing becoming annoyed.
By 2021, Mr Assaf's concerns extended past rumours and "inability to pay on time", Ms Dwyer put to him.
Mr Assaf agreed Mr Ellis actions looked "dodgy", but said it had less to do with concerns he was raising cash to fund political outcomes.
"It more had to do with him … raising funds for himself, that was the concern," he said.
"He would use it under the guise of Reformers or using my name … I felt like I had to make a concerted effort to really and intentionally split from him."
Asked if he had concerns Mr Ellis might do something "at some point that was ICAC-worthy", Mr Assaf said it would not have surprised him if he thought that at the time.
Last week, Mr Assaf labelled the group "very amateur" with considerable success in recruitment as the commission investigates whether the sub-faction took cash from prohibited donors.
The commission is investigating allegations Reformers solicited or accepted money from prohibited donors and sham contracts to assist their factional mission.
The commission is expected to call Damien Tudehope, a serving Liberal MP who left his role as shadow attorney general earlier in 2026, to appear on Monday afternoon.
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